Hemp cultivation on the rise in Germany

By João R. Negromonte with information from Hemp Today

Germany has been experiencing a true hemp agricultural boom - a type of cannabis with low THC content - in recent times. Even with strong bureaucratic barriers, the country recently reached a historic record, with 7,000 hectares of the plant cultivated by the national industry, according to the Federal Ministry of Agriculture and Food.

In real numbers, we are talking about 70 million square meters of planted land, but perhaps more important than the total area of fields is the number of farms cultivating the crop. Over the past five years, there has been a 67% increase, going from 300 areas in 2017 to 889 in 2022.

Economy: ally or villain?

Although the sector's growth is undeniable, fundamental challenges remain, starting with the economy which, according to Daniel Kruse, CEO of Hempro International in an interview with the portal Hemp Today, "price levels still do not compensate enough for farmers".

For the businessman, there are indications that, in the long term, German growers may eventually give up cultivation, given the bureaucracies encountered and the current economic situation of the country, which is facing difficulties with high inflation and worsening consumer purchasing power.

Another obstacle keeping the industry stagnant are outdated anti-drug laws, which lead to police raids on hemp shops, block legal sales of imported flowers across borders, and order hemp-based foods off the market. "Growers continue on the path to success despite the arbitrariness and oppression of authorities," said Kruse.

Hemp's rebirth

Hemp resurged in Germany for the first time in the 1990s, with fields quickly reaching 4,000 hectares in 1999. Producers mainly focused on cultivating food and fiber from the plant's seeds during the first two decades of the 21st century. This left hemp companies in Germany (and elsewhere in the EU) well-positioned and able to withstand the boom and bust of CBD, which hit the market from 2019. Although the unexpected gain from CBD was short-lived, many hemp companies already have businesses, established supply chains, and proven products in the market to fall back on.

However, in the long run, farmers may find the economy insufficient if they do not plan their hemp operations for dual outputs: flowers for CBD extraction and leaves for hemp tea, or flowers and fibers, Kruse warned.

What's the bright side of the story?

Hemp will likely remain a niche crop in Germany in the coming years. For example, wheat cultivation there is only 1,200 hectares, which pales in comparison to hemp (7,000 hectares). According to Kruse: "despite the obstacles, the prospects for the country are positive, especially in the context of hemp's potential amid growing environmental concerns and the European Union's efforts to address climate change."